Investment in infrastructure will minimise impact of rate hike on businesses

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To minimise the effect of rate hike on companies and business operations, there is need for government to focus more on policies that will unlock infrastructure.

According to experts who spoke in an chat with The Guardian, this would also help to boost existing firms and attract new businesses into the country.

For instance, GDP growth in the manufacturing sector in the first quarter of 2023 was 1.61 per cent , lower than 6.93 per cent achieved in 2022. Also the figure in 2022 was lower than 31.6 per cent in 2021. The rate hike has started already on existing loan facilities. Cost of doing business is just increasing from all angles. I do not know how productive sectors will survive. Close downs and employment loss will happen.”

between supply and demand and attracting more supply means that government must address all impediments to doing business especially infrastructure and that is what will bring down inflation.” In addition, experts had predicted that the re-enforcement of the CBN’s limit on the loans-to deposits macro-prudential ratio for deposit money banks and the hike in CRR to 45.0 per cent from 32.0 per cent will continue to compel commercial banks to generate risky assets over the short to medium term.Before flagging, please keep in mind that Disqus does not moderate communities.

 

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